Alberta to Alaska Railway

Study Commissioned by the Van Horne Institute

Presented by John Falcetta

President – Alberta Alaska Rail Development Corp

Design, Permit, Build & Operate a multipurpose railway from Alberta to tidewater

Capacity to move commodities, goods people & data (fibre optics)

Potential to also connect Alaska to lower 48 states

First Nations engaged will be full partners in the project

1. Evidence: Project design and scope began with VHI study on the project concept

2. Long term Structure: First Nations are not just “being consulted” on our project. This will be their project too, through an innovative ownership structure.

We will connect Alberta to tidewater & also connect Nations to the economic activity around them.

3. Talent: Team assembled to execute

Van Horne Institute A2A Study

Participants

Commissioned by Peter Wallis – VHI

Participants – AECOM, U of Alaska, Michigan Tech, G7G, Shiroco

Government of Alberta

Purpose of the study

Government of Alberta asked VHI to determine the feasibility (study level) & the viability of moving bitumen on a purpose built railways

VHI wanted to explore the possibility of a new mineral supply chain that would be facilitated by a railway

Business opportunities for First Nations

The Findings

• Favourable Alignment was discovered between Fort McMurray Alberta and Delta Junction Alaska, the Trans Alaska Pipeline system TAPS pipeline .

Delta Junction could be a interchange point from Rail to Pipe

• End point of Valdez, is one of the worlds safest ports that handles petrochemical

• Reverse flow of goods could be moved from the Asia Pacific to Canada or the U.S. as freight could be interchanged to the Alaska Railway utilizing ports in Alaska.

Positive Impacts of the Project: Canadian & US economy improved position to export & import

Additional route into and out of North America

Landlocked commodities can be

moved to market

First Nation’s real & substantial ownership of a major enterprise

A2A: Economic & Financial Highlights

NPV/barrel : $8 - $10 a barrel for the rail portion modelling 1.5 and 1.0 mpbd

NPV tested using high hurdle of 10.2% - increase capital cost of 50% and operating cost increase of 50% under scenarios of 1 mbp.

All in capital cost range $14 Billion - $20 million

A2A: Operating Highlights Utilizing 6 distributed locomotives in train,

ECP braking, and driver assist technology

Barrels per

year?

8 to 12 trains loaded trains (16 to 24 total

trains) operating per day (350/yr.)

630 barrels per car or 315,000

gross tons per car Trains hauling 192 cars per

trains

Team: Full Project lifecycle experience • The project team members have a direct proven track record in

conceiving and implementing major infrastructure developments

John Falcetta

Sean McCoshen

David Sharpe

Mead Treadwell

Carole Anne Hilton

A2A Proposed Timeline

Concept Informal Outreach

Identify corridor

Speak with stakeholders

Cost Estimates Revenue

Projections

CTA,STB Pre-Filing

Governmental Affairs

Refine Corridor

Engage with Stakeholders

Operating Plan Business Plan

CTA,STB Application

Formal Outreach

Conceptual Engineering

Update Stakeholders

Constraints & Alternatives

Secure Equity

CTA –CEAA

STB EIS Respond to

issues raised Preliminary Engineering

Commercial MoU’s

Prepare for RoW

Acquisition Achieve RoW

CTA, STB Permit

Final Engineering

Tendering & Procurement

Commercial Contracts

RoW Acquisition

Construction Financing

Build Other Permitting

Commence Construction

Finalize Haulage

Contracts Test & License

Operate

2017

2018

2019

2016

2015

2020

2022

Thank you for your attention

Questions